The LME nickel price has declined in the past week, with.three-month contracts dropping from over $27,000/mt to almost $24,500/mt. There was an aggregate drop of up to 10 percent on Wednesday and Thursday. The European Central Bank continues to maintain low interest rates. Meanwhile, the markets for steelmaking raw materials in China have been affected by the strengthening of the US dollar, concerns about economic development, as well as by the tightening of domestic monetary policy.
LME nickel stock (mt) versus nickel price ($/mt)
300 series and 400 series stainless steel prices have declined by $15.3/mt and $30.6/mt respectively in the past week. 201 series flat steel from Lianzhong is offered at the same price as last week in the Foshan market. There has also been no change in prices for 430 series flat steel from Taigang in the Wuxi market Meanwhile, 304 series stainless flat steel from Ningbo Baoxing has declined in price by $15.3/mt week on week.
300 series versus 400 series market price ($/mt)
The 304 series stainless flat steel price has, overall, risen by more than $122.5/mt from the beginning of May. Traders are not optimistic on the prospects for the stainless market in the coming period due to the declines in nickel prices. The transaction volume in the market is not great currently. Some traders have begun to sell at low prices under pressure from inventory and shortage of funds. On the other hand, other traders have chosen to start replenishing their stocks. Summing up, the Chinese stainless steel market may follow a weak trend in the coming week.